Indian Investors Lose ₹60 Trillion In 100 Days: What's Behind The Market Crash.

The Indian stock market is going through a tough time resulting in a massive loss of Rs 60 trillion for investors in just 100 days.

This drastic decline is said to be by the aggressive selling of shares by foreign investors which led to a sharp fall in the market that resulted in big losses for investors.

But, What’s the exact reason? 

The uncertainty surrounding the US elections and Trump’s victory has weakened corporate earnings which have played a crucial role in the market’s decline.

A surge in retail inflation has added to the market’s woes further making it increasingly challenging for investors to navigate.

Also, read| “Real Money Is With Gujjus”: Why Zerodha’s Nithin Kamath Said This

The Indian rupee has also depreciated below 86 to a dollar, exacerbating the market’s problems. This decline has resulted in a substantial loss of wealth for investors with the BSE’s market capitalisation dipping by about Rs 48.5 lakh crore by the end of 2024.

Foreign investors have sold stocks worth Rs 1.2 lakh crore ($14 billion) since October 2024, while domestic investors have bought Rs 1.3 lakh crore worth of stocks. However, this has not been enough to stop the market’s slide.

Also, read| While Trump’s Tariff Threats Loom, China’s Economy Hit Record High

Many Indian companies have reported weak earnings in the final quarter making investors worried. Prices are increasing, reaching a 14-month high which is also affecting investor sentiment, as per Axis Securities. Local investors are trying to balance this by buying stocks (worth slightly more).

The Sensex has lost nearly 10% from its all-time high in late September 2024 leaving investors worried about their hefty investments wiping out Rs 60 trillion in just 3.5 months.

Other various factors are set to influence its direction. Foreign investor inflows, corporate earnings, and global economic trends will play a crucial role in determining the market’s future.